Advertising Delivers Worst ROI, says CIM

Many marketers believe that Customer Relationship Management (CRM) delivers the best ROI, with advertising giving the worst. That’s the conclusion of the latest Marketing Trends Survey carried out on behalf of The Chartered Institute of Marketing by Ipsos MORI in the Spring.
The survey found that 24% of marketers (24%) think the best ROI is delivered by CRM activities, particularly among those working in financial services and other services firms (31%), and those in the technology and telecoms sectors (30%). Second highest in delivering good ROI, with half the number of mentions (12%), is public relations.
Advertising is most widely seen as delivering the worst ROI, with nearly a quarter (23%) of marketers rating it as worst, though for some reason, the survey excludes online advertising, which many would argue is among the most measurable, and therefore quantifiable, forms of advertising. The figure is higher (38%) among those working for technology and telecom companies 38%. Second worst performance is sponsorship, with (11%) considering it as delivering poor ROI.
“As belts tighten, it is clear that marketing spend on advertising is under pressure, but it’s refreshing to see that (through)  investment in knowing your customer, through CRM systems, marketers are able to wisely concentrate their spend in the most effective activities, and, as we move into 2010, I’m convinced this more professional approach will stand them in good stead when the economy recovers,” says David Thorp, Director of Research and Professional Development at The Chartered Institute of Marketing.
To obtain a summary of the survey’s key findings, send an email to: [email protected]
The full report is available for £250.